- Click for taxes!
Last week Gov. Christine Gregoire rolled out her proposal for dealing with the state's $2.8 billion budget shortfall. Today it's the legislature's turn.
First up this morning was the Democrat-controlled state senate, which wants to raise $900 million in new taxes in order to help fill that $2.8 billion hole. (Gregoire's proposal only had $600 million in new taxes—and more cuts to current state programs.)
The bulk of the senate's proposed tax increase comes from eliminating $518 million worth of "tax loopholes"—which currently benefit, to take just two examples, members of corporate boards and bullion traffickers. The rest comes from a proposed $1 per package cigarette tax (which would raise $86 million) and a temporary 0.3 percent increase in the state sales tax (which would raise $313 million).
It's worth noting that even this larger proposed tax increase from the senate doesn't save all the state programs that are on the chopping block right now. Still facing cuts under this proposal: the state disability assistance program, education funding, and nursing homes subsidies, among many other things.
Next up, the budget proposal from the state house, which is expected to be detailed at noon.
